Prince Edward Island Joins List Of Canadian Provinces Favoring Online Gambling

September 7, 2010 24570 Comments2010-09-07+09%3A26%3A11Ben+Nash

AHN News Staff

Charlottetown, Prince Edward Island, Canada (AHN) – Prince Edward Island has joined the growing list of Canadian provinces in favor of the government running its own gambling website in a bid to hike revenues. PEI Finance Minister Wes Sheridan spoke in favor of following the examples of British Columbia, Ontario and Nova Scotia.

Sheridan made the statement after PEI got an offer from the Atlantic Lottery Corporation to look into its Playsphere website to include online gambling.

ALC estimated that PEI would earn $50 million a year by adding online gambling, but Sheridan said the province would ensure the site would be regulated and policed if it accept ALC’s offer. Playsphere offers only interactive games.

PEI earned $14.7 million last year in lotto earnings, which was $3 million less from 2008.

British Columbia made Canadian history by launching its own gambling portal, but hours after its roll out, Vancouver closed the website because of a security breach. After a few weeks of closure, BC’s gaming has resumed operations after the technical glitch was fixed.

Ontario launched a consultation process to seek the province resident’s opinion on the matter and Nova Scotia is about to initiate a similar move.

Gambling experts pointed out that while in the initial stages of operations the province-run websites may attract bettors out of a belief that it would be safer and more socially acceptable, eventually the wagers will return to offshore portals where odds and payouts are better.

The experts reminded the officials of Canadian provinces that despite income running an online casino and other games of chance would bring to the coffers, the social cost of addiction would always be higher.

Although private online gambling sites were initially characterized as racked by fraud and corruption, since then it has grown into a relatively well-organized, regulated and secured industry overseen by watchdog groups, professional auditors and watchful players.

Among the attractions of private-run gambling sites which province-run portals could not match are loyalty bonuses, new cars and games with celebrity bettors. In contrast, BC’s online casino could offer only a $10 token upon signing up, another $100 matching deposit and $5 token for every $5,000 spent on table games or $1,000 on slots.